Question: Consider an option that expires in 68 days. The bid and ask discounts on the Treasury bill maturing in 67 days are 8.24 and 8.20,

Consider an option that expires in 68 days. The bid and ask discounts on the Treasury bill maturing in 67 days are 8.24 and 8.20, respectively. Find the approximate risk-free rate?

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The average of the bid and ask discounts is 822 ... View full answer

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